China-ASEAN Free Trade Area 3.0 Launches, Creating New Opportunities for the PET Resin Industry

2025 marks the 15th anniversary of the China-ASEAN Free Trade Area. According to the latest announcement by the General Administration of Customs of China, the substantive negotiations of the China-ASEAN Free Trade Area 3.0 (CAFTA 3.0) have been completed. The agreement focuses on strengthening bilateral cooperation in emerging sectors such as digital economy, green development, and supply chain connectivity, while also achieving breakthroughs in standard and regulatory harmonization—paving the way for more inclusive and streamlined regional trade.

The Straits Times commented that CAFTA 3.0 optimizes customs procedures and enhances supply chain linkages, offering unprecedented development space for businesses in the region. Malaysian SMEs noted that the inclusion of new e-commerce provisions has opened a promising new frontier for cross-border trade.

Progress in supply chain resilience has also been highlighted. According to Vietnam's Ministry of Industry and Trade, the dual boost from the Regional Comprehensive Economic Partnership (RCEP) and CAFTA 3.0 has spurred continuous growth in China-Vietnam bilateral trade, enhancing the competitiveness of the regional value chain in the global market. The Executive Chairman of the China-ASEAN Business Council emphasized that with improved infrastructure, both sides will unlock further cooperation potential in key areas such as digital transformation and green growth.

PET Resin Industry Captures Growth Momentum in the ASEAN Market

China's Polyethylene Terephthalate (PET) resin industry is now seeing strong opportunities emerging from the ASEAN region. Industry data shows that the food and beverage packaging sector in ASEAN countries continues to grow at an annual rate of 8–12% (Vietnam Plastic Association Annual Report 2023), providing stable, long-term demand for PET resin.

Vietnam stands out in the regional market. In 2024, demand for bottle-grade PET resin in Vietnam is projected to reach 800,000 tons, primarily driven by beverage and food packaging applications (Vietnam Industry Research Market Analysis 2024). Meanwhile, Malaysia's flexible packaging film market is expanding rapidly, with PET resin demand growing at over 10% annually (Malaysian Packaging Federation Industry Outlook 2023). Thailand's electronics and automotive sectors are also fueling rising demand for modified PET materials (Thai Petrochemical Association Market Report 2024).

From a trade policy perspective, under CAFTA 3.0, China's bottle-grade PET resin (HS Code: 3907.60) now enjoys reduced import tariffs of 0–5% in countries such as Vietnam and Thailand (ASEAN Trade in Goods Agreement 2024). Additionally, RCEP's rules of origin accumulation allow upstream raw materials such as PTA to qualify as originating within ASEAN, effectively lowering production costs and improving regional supply chain efficiency.

Navigating Regulatory Upgrades While Seizing Policy and Investment Opportunities

It is worth noting that ASEAN countries are strengthening regulations on food-contact packaging materials. Vietnam enforces the QCVN 12-1:2011 national standard, the Philippines requires BPI certification, and Thailand adopts an FDA-based system. These technical barriers raise market entry thresholds, prompting companies to enhance compliance and quality control systems.

At the same time, ASEAN governments are rolling out favorable policies to attract industrial investment. Thailand's Eastern Economic Corridor (EEC) offers tax incentives under the BOI Thailand Investment Promotion Act 2024 to encourage local production of modified PET materials. The China-Indonesia “Two Countries, Twin Parks” cooperation mechanism (China-Indonesia Economic Cooperation Zone Policy 2023) helps reduce cross-border logistics costs. Malaysia is advancing its Green Packaging Development Strategy (Malaysian Green Technology Development Plan 2023), creating new growth momentum for the recycled PET (rPET) sector.

China's Export Momentum Grows as Wankai Accelerates Regional Expansion

According to the 2024 import-export report from China Customs, three ASEAN member states—Indonesia, Vietnam, and the Philippines—rank among the top 10 countries importing PET resin(39076110) from China. Together, they account for approximately 30% of the total import volume among these top ten destinations.

As a globally influential PET resin manufacturer, Wankai New Materials Co., Ltd. has established a strong brand presence in the ASEAN market, supported by a comprehensive international certification system. The company's core bottle-grade PET products have received:

• U.S. FDA food-grade compliance under 21 CFR 177.1630 (for Polyethylene Terephthalate resins in food-contact applications);
• EU Regulation (EU) No 10/2011 compliance for plastics intended to come into contact with food;
• International Halal certifications, including Indonesia's BPJPH (Halal Product Assurance Agency) and MUI (Indonesian Ulema Council) endorsements.

As part of its global strategy, Wankai New Materials—through its wholly owned subsidiary Chongqing Wankai New Material Technology Co., Ltd.—is investing in the construction of a new polyester bottle grade plant in Indonesia, with an annual production capacity of 750,000 tons. This initiative aims to build a globally integrated production and sales service network centered around key overseas markets, enabling deeper collaboration with regional partners and achieving synergies in global capacity and market development.

Conclusion

The launch of CAFTA 3.0 brings renewed vitality to China-ASEAN economic and trade cooperation. For China's PET resin industry, it presents a valuable policy window and market opportunity. By advancing localized operations, strengthening product compliance, and optimizing supply chain strategies, the industry can better integrate into ASEAN's fast-growing markets—achieving dual goals of sustainable development and global expansion.